Uganda is struggling to fill the health financing gap triggered by President Donald Trump’s January 2025 global ban on United States foreign aid, after the Ministry of Health requested an additional Shs503.263 billion to cushion the sector from the sudden withdrawal of USAID support.
The request is part of the Shs8.104 trillion supplementary budget that Parliament approved on December 2, 2025. The government now plans to borrow Shs4.278 trillion from external lenders and Shs3.770 trillion from domestic banks to fund urgent shortfalls in the 2025 26 national budget, pushing Uganda’s total budget from Shs72.376 trillion to Shs78.631 trillion.
According to documents presented to Parliament, the Ministry of Health immediately required Shs17.95 billion to cover gaps created by the abrupt halt in United States funding for essential health services, including laboratory operations, the Health Management Information System, WASH interventions, and neglected tropical diseases.
Parliament further endorsed an additional Shs69.693 billion for the ministry to prevent drug stockouts and avert potential health emergencies following the USAID withdrawal.
National Medical Stores emerged among the biggest beneficiaries, receiving Shs115.76 billion for wages, medical supplies, and operational needs for the newly completed UPDF Referral Hospital in Mbuya. The funds will also support the storage and distribution of increased GAVI vaccine supplies expected during the 2025 26 financial year, as well as health commodities previously funded by USAID.
Lawmakers later approved an extra Shs269.777 billion for National Medical Stores to cover further shortfalls in medical supplies, including those affected by the United States government orders.
The Uganda Heart Institute secured Shs40.047 billion to advance civil works for its long-delayed Naguru facility. Although Parliament approved loans from BADEA, the OPEC Fund, and the Saudi Fund in 2023 totaling $73 million (Shs255.372 billion), progress has stalled due to funding constraints for power installation at the site and mismatched project timelines set by the lenders.
The Ministry of Health also received Shs10 billion to revive the National Ambulance System after reporting that most ambulances across the country are grounded by fuel shortages and mechanical failures.
In addition, Parliament cleared Shs249 million from UNICEF for nutrition programs at Moroto Regional Referral Hospital in Karamoja. Although the funds were released after the approval of the 2025 26 budget, they required supplementary approval before use.
Despite the significant allocations, the approved Shs503.263 billion barely scratches the surface of the crisis. The Ministry of Health had earlier warned that the USAID freeze, combined with long-standing underfunding, left the sector facing a Shs1.776 trillion shortfall as of April 2025, threatening to reverse critical health gains.
Uganda now faces the urgent task of stabilizing its health sector while navigating the long-term consequences of the sudden loss of one of its biggest development partners.
